Blue Nile Reports Record Q4 Net Sales of $90.7 Million, up 23.9%

Online jeweler and diamond retailer Blue Nile reported fourth quarter net sales of $90.7 million. Net sales for the year totaled $251.6 million, an increase of 23.9 percent over the fourth quarter of 2005, and an increase of 23.8 percent over 2005 respectively.

Gross profit for the quarter increased 16 percent to $18.7 million. Gross profit as a percentage of net sales was 20.6 percent compared to 22 percent in the fourth quarter of 2005.

The company repurchased approximately $57.4 million, or 1.8 million shares, of its common stock during the year. Since February 2005, Blue Nile has repurchased 2,351,518 shares of its common stock, or 13.2 percent of shares outstanding. The company said it may purchase up to an additional $93.2 million of its common stock.

Releasing its forecast for 2007, the company expects net sales for the first quarter of between $61 million and $63 million.

“We increased our share of the U.S. diamond engagement ring market, expanded our business into other types of fine jewelry, and continued to build our international business,” Mark Vadon, founder and CEO, said. “We accomplished all of this while generating strong profitability and cash flow.”

In related news, Blue Nile announced that Diane Irvine has been promoted to president of the company. Irvine will be responsible for the company’s day-to-day operations and will continue to hold the position of chief financial officer until a successor is named. Vadon will focus on the strategic direction and growth initiatives.